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POLICY FOR INSERTION INTO THE POLICY MANUAL <br />~EETING DATE: Mav 6, 1998 NUMBER: P: 0540 <br />EFFECTIVE DATE: May 6, 1998 REVISIONS: <br />POLICY: ORANGE COUNTY BOARD OF COMMISSIONERS <br />DEBT MANAGEMENT POLICY <br />The County has long recognized the importance of proper long-range planning in order to meet capital improvement <br />needs as they arise without experiencing dramatic impacts on operational costs and debt service. The following policy <br />statements will provide guidance on the issuance of debt to help insure that the County maintains a sound debt position <br />and that its credit quality is protected. In conjunction with the County's Capital Policies, these policy statements <br />rationalize the decision making process, identify objectives for staffto implement, and demonstrate a commitment to <br />long term financial planning objectives. In addition, this debt management policy will allow for an appropriate balance <br />between the establishing debt parameters and providing flexibility to respond to unforeseen circumstances and new <br />opportunities. <br />POLICY STATEMENTS <br />Purpose and Tvpe of Debt <br />1. Incurrence of debt or long-term borrowing will only be used for the purpose of providing financing for capital <br />projects to include, but not be limited to: <br />Construction of new School and County facilities <br />. Renovation and repair of existing School and County facilities <br />c. Acquisition of real property (land and/or buildings) <br />d. Construction or expansion of Sanitary Sewer Systems. <br />e. Providing funds for Affordable Housing Projects. <br />L Construction, acquisition and development of Parks. <br />g. Purchase of major equipment <br />Debt issuance will not be used to finance current operations or normal maintenance. <br />2. The types of debt instruments to be used by the County include: <br />a. General Obligation Bonds <br />b. Bond Anticipation Notes <br />c. Installment Purchase Agreements (private placement) <br />d. Special Obligation Bonds (landfill only) <br />e. Certificates of Participation, when feasible <br />f. Revenue Bonds <br />3. All debt issued, including installment purchase methods, will be repaid within a period not to exceed the expected <br />useful life of the improvements or equipment financed by the debt. <br />The County will not issue tax or revenue anticipation notes. <br />